Compare the best options on the market and choose the one which best adapts to your day to day needs.
Further Below: Our Guide To Loans in Kenya, Everything you need to know.
1. Stanbic Bank
- Offers unsecured loans
- Microloan of up to KSH 4 million
- Maximum loan term of 60 months
- Loan approved within the first 48 hours
- Low interest rates and facility fees
- Offered to customers with a stable income
2. NIC Bank
- Offers loans between KSH 100,000 and 4,000,000
- Monthly repayment term of between 6 months and 6 years
- A good credit score during the repayment period may earn you an additional loan
- Low interest rates
- Available to customers with regular income
3. Barclays Bank
- You can borrow up to KSH 6 million
- A repayment term of up to 72 months
- Friendly interest rates and facility fees
- Offers unsecured loans
- Cost-friendly credit life insurance
- Availed to self-employed, long-term employees, and contract employees
Loans in Kenya, All You Need To Know:
Be in the loop on how to get the best loan in Kenya in 15 minutes. We are passionate about helping you to find the best offer that perfectly fits your financial situation. Hence, we avail you of all the information you need to have including all the factors to consider before committing to an offer.
- Online mini credits offer up to KSH 500 to new applicants
- Older applicants can get up to KSH 10.000, depending on the level of trust they’ve developed with the entity
- Such loans are curated for small economic needs
- They are mostly repaid in total after one month
- They have fast application processes which are 100% online
- They can be easily abused, hence, take them out only when in real need
What are loans and how do they work?
Loans are financial instruments that we use to improve our financial situation. A lender provides loans under a series of conditions that the borrower will have to agree with before signing up for the loan contract. These conditions are regulated by the Kenyan Law on consumer credits to ensure that borrowers are not exploited and that they operate in a safe space.
After taking out the loan, the lender will require you to make monthly installments or repay the whole at the end of the tenure. This all depends on the lender’s preferences. Moreover, the amount and interest rates of the loans are set by the lender but, of course, regulated by the government.
A few factors could affect your eligibility for loans in Kenya such as a negative credit score on the Credit Reference Bureau (CRB), a low level of income, and a lack of a residence permit card. Nonetheless, interest rates in Kenya are somewhat friendly.
What we should know about mini-credits
- They are designed to address small financial needs
- They best address urgent financial contingencies
- They offer up to KSH 500 for new applicants
- They are among the fastest loans (financing in 15 minutes)
- Their interest rates are more expensive than other loan types
When is it advisable to apply for loans?
One major step to taking out loans responsibly is knowing when you need to take them out. This helps you embrace sobriety and rubbish all the hype about cheap loans even when you don’t really need them.
It is advisable to apply for mini-loans if/if not:
- You’re faced with a non-recurrent need
- The purpose needs an urgent financial injection
- You have no alternative source of money
- You can assume repayment with ease
- You do not solicit on a regular basis
- You’re prepared for every single charge
- You know everything about the loan and how it works
- You’re faced with a recurrent or habitual need
- The need can wait for your next paycheck
- You doubt your financial ability to repay the loan
- You would like to request the loan regularly
- You do not know how much in total you’re going to spend on the loan
- You do not know how the loan works
Use the above guide to assess your financial situation and determine whether the loan at hand is what you’d want to commit to.
How much money can I get with mini-credits?
Instant mini loans provide small amounts of money that serve small economic contingencies. These loans grant us small loans for the first application and may go ahead to improve the conditions as we take out more loans.
Up to 500 shillings
Up to 10,000 shillings
Since these loans are unsecured and there’s no relationship between the lender and the borrower, the entity will reduce the risk and grant small loan amounts for the start as they monitor the behavior of the client. If the client is sure to make timely repayments repeatedly, the lender may consider improving their financial conditions.
The lender will, hence, slowly but surely increase the loan amount and may proceed to reduce the interest rates as they prolong the repayment period.
Requirements to access loans
Entities have set very lax requirements on online mini credits due to their nature (unsecured and small).
Below are the must-meet requirements:
- Collect regular income. You’ll be required to have a monthly salary; a regular source of income to demonstrate the ability to repay the loan.
- Be of the right age. While you may get financing at 18 years old, many entities will feel safer with 21 years as the minimum age requirement.
- Be a resident of Kenya. You’ll need to prove this with a residence permit card, whether temporary or permanent.
- Have a positive credit score on CRB. Lenders will dismiss your application if you have a negative credit score.
The above data will be filled out in an online application form from which the lender will establish your eligibility for the loan.
Documents to be submitted when requesting a loan
Online loan lenders will require us to send very few documents as proof that we meet their spelled-out requirements and verify our application. You’ll be required to send the documents online by uploading a photo, sending them via email, or scanning them.
Below are the required documents:
- Valid identity card.
- Last paycheck or income received (sometimes you can ask for the last three)
- Bank statement showing the holder and the account number.
You may not need to send your bank details to many entities which now use online verification systems to validate your application.
How to take out loans online step by step?
Steps to contract a mini loan
- Choose the amount and term
- Fill in the form
- Send the documentation
- Read and sign the contract
It is easier to take out an online mini loan than any other type of loan due to its fast application and hiring. The online application and verification have condensed the whole application process into four major steps:
- Select your preferred loan amount and the repayment period. Indicate how much money you need and for how long you intend to repay it.
- Receive the application form and fill it out. Proceed to the next screen and be sure to fill it out with the most accurate personal data: name and surname, ID, date of birth, mobile, and address, among others.
- Verification. The lender will employ online verification systems as they look out for any errors between your application form and financial documents. If all seems good, the lender will head over to the last stage.
- Read and sign the contract. The lender will send you contractual information which you will need to read through to familiarize yourself with the loan offer. If you’re in total agreement, sign up for the contract electronically through a code that will be sent to your cell phone.
About this page and our methodology
What this page is for: we use the best available information to prepare easy-to-understand information about the different types of loans that are available in the Kenyan market, and which entities and platforms we can use to get started. We also provide you with guidelines to get the right funding which ensures your business obtains liquidity and on the other hand, a seamless repayment experience.
Source: the above information has been obtained from several reliable sources including the Kenyan Law, the Central Bank of Kenya
Methodology: The data relating to the conditions of these products (amount, term, interest, etc.) have been obtained through online research and consultation of the official statistics of the aforementioned reference sources.
About us: FUNDGECKO is an online comparator website that avails upgraded, relevant information needed for personal finance. At zero charges, any user can, like a pro, compare the options available in the market and end up with a product that’s compatible with their needs and financial situation.
Note: All services at FUNDGECKO require no charges at all. Our website sources its income from advertising and featured products.